NEW DELHI: In the ongoing tussle between the Burman family and directors of Religare Enterprises Ltd (REL), the former on Wednesday said the Religare board has no power to reject its open offer for the company.
This statement by the Burmans came after an independent director of Religare criticised the timing of the open offer and called it ‘fishy’. “The Board of REL does not have the power or authority to reject our open offer. It only has the power to recommend the open offer to the shareholders. It is a separate matter, that the shareholders have already seen the governance lapses in Religare Enterprises and whether the directors can be said to be discharging their duties correctly.
Ultimately, it is for the shareholders to decide whether to tender the shares in the open offer or stay invested, post regulatory approvals to the open offer,” said spokesperson of Burman family. The Burmans claim the open offer price is calculated as per the formula provided in the Sebi Takeover Regulations. As per this formula, the calculation comes to around Rs 221.
“The open offer price of Rs 235, is at a premium to that price. Keeping the overall shareholder interest in mind, we will move towards closing the transaction expeditiously working with all the regulators. Given our credentials, an overwhelming majority of the shareholders are supportive of the proposed transaction and we remain confident that under our guidance, REL’s performance would see significant uptrends,” the spokesperson added.
Since the Burmans on September 25 announced their intention to acquire Religare through an open offer, the two sides have exchanged serious blows. Religare board, led by Chairperson Rashmi Saluja, has accused the Burman family of market manipulation and their involvement in various “frauds and financial improprieties” which are under investigation. The Burman family has accused Saluja of violating the insider trading rules and raised objections on her annual compensation.